According to the Virginia Department of Revenue, Military Retirement is taxable and is included in gross income on the return. This applies to a military pension received while the retiree is a Virginia resident regardless of where the military retiree was stationed.
However, military retirement income received by individuals awarded the Medal of Honor can be subtracted from federal gross income. The amount of the subtraction is the amount of military retirement benefits reported in federal adjusted gross income. The subtraction does not apply to benefits received by a surviving spouse.
If you meet this requirement, please go to,
- State Section
- Edit Virginia return
- Subtractions from Income
- Other Subtractions
- Add Other Subtractions
- Medal of Honor Recipients